Dramatic increase in bankruptcies – 34 percent more this year

During September, bankruptcies increased by 14 percent compared to the same month last year.
And from January to September, there has been an increase of a whopping 34 percent.
– The situation is worrying, says Sanna Arnfjorden Wadström, CEO of the employers’ organization Sinf.

Thus far, during the first nine months of the year, bankruptcies have increased by 34 percent. Many of the companies in Sweden are having a tough time right now.

Less left on the last line

She believes that it has become significantly more difficult to run a business after the corona pandemic, due to many cost increases.

– We have a high interest rate situation, high inflation, it is much more expensive to make purchases and now we also have quite strong wage increases – there will be less left on the bottom line, says Sanna Arnfjorden Wadström, CEO of the employers’ organization Sinf.

So it’s about liquidity problems. She says that many companies want to make large technology investments, but they don’t have the capital.

– It is serious when we see potential growth companies that fail, says Sanna Arnfjorden Wadström in Nyhetsmorgon.

“We neglect our growth”

The industries that have been hit hardest so far are the construction and service sectors. The government recently increased the tax deduction in an attempt to strengthen the construction sector. But Sanna Arnfjorden Wadström calls for more long-term measures.

Martin: But don’t you run the risk of fueling inflation then?

– The companies account for four out of five Swedish jobs, so if you can create better growth in the small and medium-sized companies, it means that we can all get more food on the table in the coming years. We must invest more in the companies, she says.

She draws parallels to Germany, where medium-sized companies are faring much better than in Sweden.

– We are neglecting our growth in this way, she warns.